141 / 196
141
Under the cost method, income from investments in
subsidiaries will be recorded when dividends are
declared.
2.3.2 Jointly-controlled entity
The interest in a jointly controlled entity is accounted
for using the equity method in the consolidated and the
cost method in the entity financial statements.
2.3.3 Associates
Associates are the entities which the SET influences,
but does not control. In the consolidated financial
statements, investments in associates are initially
recognised at cost and are subsequently accounted
for using the equity method of accounting.
The SET’s share of its associates’ post-acquisition
profits or losses is recognised in the statement of
comprehensive revenues and expenses. The cumulative
post-acquisition movements are adjusted against the
carrying amount of the investment. When the SET’s
share of losses in associates equal or exceed its interest
in the associate, the SET does not recognise further
losses, unless it has incurred obligations or made
payments on behalf of the associate.
Unrealised gains on transactions between the SET
and its associates are eliminated to the extent of the
SET’s interest in the associates. Unrealised losses on
transactions are also eliminated unless the transaction
provides evidence of an impairment of the asset
transferred.
In the entity’s financial statements, investment in
associates are accounted for using the cost method.
Allowance, if any, is recorded for impairment in
investment in subsidiaries, jointly-controlled entity
and associates in the statement of comprehensive
revenues and expenses.
A list of the SET’s principal subsidiaries, jointly-
controlled entity and associates is provided in Note 1.
2.4 Foreign currencies
a) Functional and presentation currency
Items included in the financial statements
of each of the group’s entities are measured using
the currency of the primary economic environment in
which the entity operates (‘the functional currency’).
The consolidated financial statements are presented
in Thai Baht, which is the group’s functional and the
group’s presentation currency.
b) Transactions and balances
Foreign currency transactions are translated
into the functional currency using the exchange
rates prevailing at the dates of the transactions or
valuation where items are re-measured. Foreign
exchange gains and losses resulting from the settlement
of such transactions and from the translation at
year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are
recognised in the revenues or expenses.
When a gain or loss on a non-monetary item
is recognised in other comprehensive revenues and
expenses, any exchange component of that gain or
loss is recognised in other comprehensive revenues
and expenses. Conversely, when a gain or loss on a
non-monetary item is recognised in revenues or
expenses, any exchange component of that gain or
loss is recognised in revenues or expenses.
2.5 Underlying assets
Underlying assets are the financial assets carried
by Thai NVDR Co., Ltd. (the subsidiary). The financial
liabilities are the Non-Voting Depository Receipts
(NVDRs). The subsidiary will offset the financial assets
and financial liabilities, and show the net amount in
the financial statements. According to the regulations
and conditions in the prospectus, the subsidiary are
responsible for issuing and selling NVDRs and making
investments in listed companies in the Stock Exchange
of Thailand at the same amount and in the same
period (back to back). In addition to the entitlement
of financial benefits of those underlying securities as